HW Coates plays down 20% rise in profit

Packaged chemicals logistics specialist HW Coates Holdings has played down a near 20% rise in pre-tax profit last year, describing it as “satisfactory”.

The Leicester-based firm saw turnover increase by 10% in the year to 31 December to £37.8m (2012: £34.3m); pre-tax profit rose from £8.1m to £9.7m – up 19.9%.

The jump followed an a stellar performance in 2012, during which the firm raised its pre-tax profit by 34% on a 4% rise in turnover.

As in the previous year, much of the turnover during 2013 came from subsidiary HW Coates, which separately reported a 9.2% rise in turnover from £26.6m to £29m, and a 1.9% rise in pre-tax profit from £8.1m to £8.26m.

After tax, HW Coates contributed £6.85m of profit to its parent. There was also a contribution of £203,000 from The Hazchem Network (2012: £173,000), in which HW Coates Holdings has an indirect interest of 84%; and a £798,000 contribution from Coates Scotland, turning around a loss in 2012 of £48,000.

Commenting on this year’s results, MD Tom Coates said: “HW Coates had a satisfactory year. Normalised profit was steady and the company continued its policy of reinvesting any surplus to support its customers - principally in two new chemical warehouses at Middlewich and Grangemouth.

“Also encouraging was continued steady revenue growth as our membership of the Hazchem Network, along with 40 other chemical hauliers, allows us to take share from old-fashioned operators.”

In the accounts, the firm’s directors said they anticipated group financial performance would “continue at a satisfactory level” during the current year.